A new U.S. Navy contract awarded to Fincantieri Marine Group is expected to bring economic ripple effects across northeast Wisconsin, including Door and Kewaunee counties, as the military reshapes its shipbuilding strategy following the cancellation of a major frigate program.
The Navy recently scrapped its Constellation-class guided-missile frigate program after delays, rising costs and design changes reduced commonality with its original European-based design. The move reflected broader challenges in naval shipbuilding, where programs such as the Zumwalt-class destroyers and Littoral Combat Ships have also faced cutbacks and cost overruns.
Amid that shift, the Navy is moving forward with other priorities, including a $30 million contract to Fincantieri Marinette Marine to begin work on the first four Medium Landing Ship vessels. The funding supports long-lead materials and production readiness, with construction potentially starting in late 2026.
The Landing Ship Medium program is designed to enhance U.S. Marine Corps mobility and logistics in contested environments and is considered a key element of future naval operations.
Company officials say the contract underscores confidence in the region’s shipbuilding capacity. Over the past decade, Fincantieri has invested nearly $800 million in its U.S. shipyards, including facilities in Marinette and Sturgeon Bay, to expand production and modernize infrastructure.
Local leaders say the investment carries broader implications.
“Looking at what we're getting, it is definetely exciting after some of the bad news that came forward on the Fedral change of direction last year. This is big news for our region in both Marinette and Sturgeon Bay, and a strong signal for the future of American shipbuilding,” said Spencer Gustafson, a District 4 alderman. “The future will start here in Sturgeon Bay and in Marinette. This investment is about more than ships, it’s about jobs, workforce development and strengthening our national defense capabilities.”
Gustafson said the project highlights the importance of skilled trades across the Great Lakes region, including Door and Kewaunee counties, where many workers are tied to the maritime industry.
The Navy is expected to pursue a new frigate design as it works to avoid past procurement challenges while advancing future shipbuilding efforts.
